In reply to:
So the only place I need to really concentrate on is the ceiling and the side wall that opens to the rest of the basement as far as the soundproofing goes. Now, how much soundproofing do I loose when I add recessed lighting into the ceiling. Is this a bad idea or not. I was planning on running this type of lighting throughout the ceiling and put them on dimmer switches that I can control by remote. If all I have to do is use the quiet rock for the ceiling and the other wall then I could probably afford to do that. 3 of the walls are next to concrete block.
Partition walls that are used to separate different spaces (home theater from adjacent office for example) should have the staggered wall construction (Note: considering the actual difference in cost between the "cheapest" and "better" construction, it is not that much more of an investment to create a staggered wall construction - Alan was correct with this instruction; it is really more labour than material cost).
When constructing the staggered wall, place the batt insulation against the wall that is not on the media room side. It is recommended to leave an air gap rather than fill the cavity completely with insulation.
The ceiling will rely on the batt insulation to provide the noise isolation. Noise will obviously be conducted through the ceiling/joist interface to the floor above but this should not be significant.
I would avoid recessed lighting. Either use wall sconces or a lit valence. Recessed lighting is a path for sound leakage as well as requiring special fixtures rated for insulated installation (fire hazard, otherwise). You can still use dimmer controls.
If three of your four walls are nest to concrete block, then you need only one staggered wall with Quietrock. All walls still require batt insulation, however you would use acoustic batt on the staggered wall and regular thermal insulation on the walls with block. The walls against the block do not need an air gap and should not require the Quietrock product.
It should be noted that if you use anything other than Roxul or rigid foam board against the exterior block walls, you should install a vapour barrier to protect the insulation and stop moisture from permeating and condensing in the walls. What region do you live in?